John Blackledge, an analyst from TD Cowen, maintained the Buy rating on Pinterest (PINS – Research Report). The associated price target was lowered to $40.00.
John Blackledge has given his Buy rating due to a combination of factors including Pinterest’s anticipated revenue growth and strategic advancements. Despite some macroeconomic concerns such as tariffs and softening consumer sentiment, Blackledge forecasts a 14.6% year-over-year revenue increase for the first quarter, driven by improved monetization and the introduction of new advertising tools.
Furthermore, he highlights the potential for continued growth through the expansion of Pinterest’s Performance+ advertising tools, and partnerships with major companies like Google and Amazon. Additionally, the recovery in advertising spend, particularly in the Food & Beverage sector, and a significant year-over-year increase in ad spend in the first quarter, support his positive outlook. While the price target has been adjusted to $40 from $46, the stock’s valuation remains attractive with a strong free cash flow yield and EV/EBITDA multiple.
In another report released on April 3, RBC Capital also maintained a Buy rating on the stock with a $45.00 price target.